Tuesday, May 5, 2015

Sunoco sold to Texas firm; Phila refinery still in talks

Energy Transfer Partners will pay $5.3 billion/ $50 a share

Sunoco sold to Texas firm; Phila refinery still in talks

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Energy Transfer Partners LP, Dallas, says it has agreed to pay $5.3 billion, or $50.14 a share, in cash and stock, for Sunoco, the century-old Philadelphia oil company that has been selling and shutting its refineries to concentrate on logistics and retail sales. Inquirer's Andrew Maykuth writes more here. Announcement here.

Energy Transfer boss Kelcy Warren called the deal "the next step in Energy Transfer Partners’ transformation into a more diversified enterprise with an integrated and expanded footprint." 

The sale makes Sunoco's remaining businesses "an important part of a diversified leader in the energy industry,” said Brian P. MacDonald, Sunoco’s chief executive.

McDonald said Sunoco's steady "cash flows (from) our logistics and retail businesses generate are backed by great assets, deep expertise, and the potential for future growth. ETP has an interest in growing its Marcellus Shale-related activity, and I am pleased that the combined enterprise will retain a strong Pennsylvania presence" with a continuing logistics and retail headquarters in Philadelphia.

"Sunoco will continue its plans for exiting its refining business as previously announced, as well as continue its plans for the proposed refinery joint venture being discussed by Sunoco and The Carlyle Group," McDonald added. Maykuth on the Carlyle talks here.

PhillyDeals note on Sunoco's history and fate here.

ALSO: "ETP and Sunoco will host a conference call today at 8:30 a.m. EDT (7:30 a.m. CDT) to discuss the transaction details. The dial-in number for the call is 888-390-0918 in the United States, or 415-228-4586 outside the United States. The participant pass code is ETPSUN. The call will also be available for replay on ETP’s and SUN’s websites for a limited time."

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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